CELESTICA INC (CLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLS - CA15101Q2071 - Common Stock
288.87 USD
-14.11 (-4.66%)
294 USD
+5.13 (+1.78%)
CLS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. CLS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CLS is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes CLS very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year CLS was profitable.
CLS had a positive operating cash flow in the past year.
CLS had positive earnings in each of the past 5 years.
In the past 5 years CLS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.85%, CLS belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
CLS has a Return On Equity of 35.33%. This is amongst the best in the industry. CLS outperforms 95.16% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.33%, CLS belongs to the top of the industry, outperforming 95.97% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CLS is above the industry average of 9.29%.
The 3 year average ROIC (11.43%) for CLS is below the current ROIC(21.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROIC | 21.33% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
CLS's Profit Margin of 6.35% is fine compared to the rest of the industry. CLS outperforms 70.16% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.33%, CLS is in the better half of the industry, outperforming 70.16% of the companies in the same industry.
In the last couple of years the Operating Margin of CLS has grown nicely.
The Gross Margin of CLS (12.04%) is worse than 75.81% of its industry peers.
CLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
CLS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CLS has been reduced compared to 1 year ago.
Compared to 5 years ago, CLS has less shares outstanding
Compared to 1 year ago, CLS has a worse debt to assets ratio.
2.2 Solvency
CLS has an Altman-Z score of 6.80. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
CLS has a Altman-Z score of 6.80. This is amongst the best in the industry. CLS outperforms 83.06% of its industry peers.
The Debt to FCF ratio of CLS is 1.97, which is an excellent value as it means it would take CLS, only 1.97 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CLS (1.97) is better than 78.23% of its industry peers.
CLS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
CLS has a Debt to Equity ratio of 0.37. This is in the lower half of the industry: CLS underperforms 62.10% of its industry peers.
Even though the debt/equity ratio score it not favorable for CLS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 6.8 |
ROIC/WACC2.62
WACC8.13%
2.3 Liquidity
CLS has a Current Ratio of 1.47. This is a normal value and indicates that CLS is financially healthy and should not expect problems in meeting its short term obligations.
CLS's Current ratio of 1.47 is on the low side compared to the rest of the industry. CLS is outperformed by 76.61% of its industry peers.
CLS has a Quick Ratio of 1.47. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
CLS's Quick ratio of 0.88 is on the low side compared to the rest of the industry. CLS is outperformed by 86.29% of its industry peers.
The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 47.90% over the past year.
CLS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.11% yearly.
The Revenue has grown by 22.09% in the past year. This is a very strong growth!
Measured over the past years, CLS shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
3.2 Future
The Earnings Per Share is expected to grow by 38.14% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.74% on average over the next years. This is a very strong growth
EPS Next Y53.05%
EPS Next 2Y46.37%
EPS Next 3Y43.28%
EPS Next 5Y38.14%
Revenue Next Year26.48%
Revenue Next 2Y29.67%
Revenue Next 3Y30.76%
Revenue Next 5Y27.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 54.71, CLS can be considered very expensive at the moment.
CLS's Price/Earnings ratio is in line with the industry average.
CLS is valuated expensively when we compare the Price/Earnings ratio to 26.43, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 34.39, which means the current valuation is very expensive for CLS.
CLS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CLS to the average of the S&P500 Index (23.66), we can say CLS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.71 | ||
| Fwd PE | 34.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CLS is on the same level as its industry peers.
CLS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.45 | ||
| EV/EBITDA | 34.07 |
4.3 Compensation for Growth
CLS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CLS has an outstanding profitability rating, which may justify a higher PE ratio.
CLS's earnings are expected to grow with 43.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)1.14
EPS Next 2Y46.37%
EPS Next 3Y43.28%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
288.87
-14.11 (-4.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners73.88%
Inst Owner Change-5.31%
Ins Owners0.52%
Ins Owner Change12.08%
Market Cap33.23B
Revenue(TTM)11.28B
Net Income(TTM)716.70M
Analysts81.11
Price Target249.34 (-13.68%)
Short Float %2.71%
Short Ratio1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.15%
Min EPS beat(2)6.6%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)6.73%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.68%
EPS beat(12)12
Avg EPS beat(12)8.66%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)6.2%
Min Revenue beat(2)5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)3.54%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.49%
Revenue beat(12)11
Avg Revenue beat(12)3.14%
Revenue beat(16)14
Avg Revenue beat(16)3.37%
PT rev (1m)28.74%
PT rev (3m)53.66%
EPS NQ rev (1m)4.73%
EPS NQ rev (3m)19.76%
EPS NY rev (1m)2.21%
EPS NY rev (3m)8.11%
Revenue NQ rev (1m)3.97%
Revenue NQ rev (3m)14.35%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)5.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.71 | ||
| Fwd PE | 34.39 | ||
| P/S | 2.95 | ||
| P/FCF | 83.45 | ||
| P/OCF | 60.17 | ||
| P/B | 16.38 | ||
| P/tB | 23.53 | ||
| EV/EBITDA | 34.07 |
EPS(TTM)5.28
EY1.83%
EPS(NY)8.4
Fwd EY2.91%
FCF(TTM)3.46
FCFY1.2%
OCF(TTM)4.8
OCFY1.66%
SpS98.07
BVpS17.63
TBVpS12.28
PEG (NY)1.03
PEG (5Y)1.14
Graham Number45.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROCE | 26.62% | ||
| ROIC | 21.33% | ||
| ROICexc | 23.67% | ||
| ROICexgc | 30.35% | ||
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% | ||
| FCFM | 3.53% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexgc growth 3Y31.4%
ROICexgc growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score7
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 94.54% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 15.59 | ||
| Cash Conversion | 55.82% | ||
| Profit Quality | 55.56% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 6.8 |
F-Score7
WACC8.13%
ROIC/WACC2.62
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
EPS Next Y53.05%
EPS Next 2Y46.37%
EPS Next 3Y43.28%
EPS Next 5Y38.14%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
Revenue Next Year26.48%
Revenue Next 2Y29.67%
Revenue Next 3Y30.76%
Revenue Next 5Y27.74%
EBIT growth 1Y62.33%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year67.79%
EBIT Next 3Y43.39%
EBIT Next 5Y38.43%
FCF growth 1Y48.75%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y40.82%
OCF growth 3Y27.84%
OCF growth 5Y6.55%
CELESTICA INC / CLS FAQ
Can you provide the ChartMill fundamental rating for CELESTICA INC?
ChartMill assigns a fundamental rating of 7 / 10 to CLS.
What is the valuation status for CLS stock?
ChartMill assigns a valuation rating of 4 / 10 to CELESTICA INC (CLS). This can be considered as Fairly Valued.
How profitable is CELESTICA INC (CLS) stock?
CELESTICA INC (CLS) has a profitability rating of 8 / 10.
How financially healthy is CELESTICA INC?
The financial health rating of CELESTICA INC (CLS) is 7 / 10.
Can you provide the expected EPS growth for CLS stock?
The Earnings per Share (EPS) of CELESTICA INC (CLS) is expected to grow by 53.05% in the next year.